SBI Slashes Loan Interest Rate By 25 bps On This Short-Term Tenure; Check MCLR Loan Interest Rates Effective From Oct 15

SBI MCLR Loan Interest Rate: RBI implemented MCLR on 1 April 2016 to determine rates of interest for loans. Notably, the revised MCLR became effective on October 15.

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SBI MCLR Loan Interest Rate: The State Bank of India has announced its latest marginal cost of funds-based lending rate (MCLR) for loans, effective from October 15 to November 15, 2024. The bank has reduced the interest rate for one MCLR tenure by 25 basis points (bps), while other rates remain unchanged.

The revised MCLR became effective on October 15.  

What Is MCLR?

The marginal Cost of Funds based Lending Rate (MCLR) is the minimum lending rate below which a bank is not permitted to lend. MCLR replaced the earlier base rate system to determine the lending rates for commercial banks. Notably, RBI implemented MCLR on 1 April 2016 to determine rates of interests for loans.

Latest SBI MCLR Loan Interest Rates October 2024 

The State Bank of India (SBI) announced its latest marginal cost of funds-based lending rates (MCLR) for various loan tenures. The overnight MCLR remains unchanged at 8.20%, while the one-month MCLR has been reduced from 8.45% to 8.20%. 

For the three-month, six-month, one-year, two-year, and three-year tenures, the MCLR rates remain consistent with the previous rates. The three-month MCLR stands at 8.50%, the six-month at 8.85%, the one-year at 8.95%, the two-year at 9.05%, and the three-year at 9.10%. 

Tenor	Existing MCLR (In %)	Revised MCLR (In %)
Overnight	8.20	8.20
One Month	8.45	8.20
Three Months	8.50	8.50
Six Months	8.85	8.85
One Year	8.95	8.95
Two Years	9.05	9.05
Three Years	9.10	9.10

Other SBI Lending Rates 

As of September 15, 2024, the State Bank of India's base rate stands at 10.40%. The Benchmark Prime Lending Rate (BPLR) has been revised to 15.15% per annum, also effective from the same date.

For home loans, SBI's External Benchmark Lending Rate (EBLR) is set at 9.15%, which is linked to the RBI repo rate of 6.50% plus a spread of 2.65%.  The interest rates on home loans can vary between 8.50% and 9.65%, depending on the borrower's CIBIL score.